Sub-Contracts for appointing Subcontractors
As building works become increasingly more complicated, so it becomes less and less likely that any one contractor will have all the required skills and trades to carry out all of the works necessary to construct them.
The use of sub-contractors enables the main contractor to undertake more complex projects whilst not increasing his risk.
Increasingly therefore, contractors will use sub-contractors to carry out particular elements of the works. Sub-contractors, or subcontractors are sometimes referred to as 'subbies', or increasingly, simply as 'suppliers'.
Elements of the works that might be subbed out to sub-contractors might include; piling, roofing, cladding, civil engineering, steelwork, plumbing, electrical services, and so on.
Increasingly, some sub-contractors will themselves sub-contract elements of their package of works to other suppliers. This has resulted in the development of complex supply chains, with different tiers of suppliers, some of whom may be entirely unknown to the client.
There are three main types of sub-contractor:
Domestic sub-contractor This is a sub-contractor selected and appointed by the main contractor.
Nominated sub-contractor A sub-contractor selected and nominated by the client to carry out an element of the works. The client negotiates a price with the nominated sub-contractor and then instructs the main contractor to appoint them for those works.
Named sub-contractor Is a sub-contractor for a particular package selected from a list of acceptable sub-contractors provided by the client. Once the main contractor has been appointed, they then seek tenders for the various packages from the named sub-contractors. A sub-contract is then placed with the successful subcontractor.